The dollar edged higher against the euro and yen on Thursday following progress in U.S. trade talks with key partners.
The Japanese central bank’s deputy governor, Shinichi Uchida, said a trade deal with Washington had reduced economic uncertainty, comments that fueled optimism in the market about the potential resumption of interest rate hikes.
Still, some analysts think the yen faces persistent headwinds due to domestic political uncertainty following Sunday’s upper house election.
The European Union is nearing a deal that would impose a broad 15% tariff on EU goods entering the United States, roughly in line with economists’ expectations.
Meanwhile, risk assets rallied as the trade deals eased fears over the economic fallout of a global trade war.
